Checkers and Rally's Franchise Review 2026: Costs, Fees, News, Average Revenues and/or Profits

Ambrosio’s Take

Checkers & Rally’s operates two separate drive-thru burger chains, geographically distinct but sharing a common parent company, compact modular restaurant design, and value-priced menu, giving franchisees flexibility to develop traditional, end-cap, or non-traditional sites. The $449,000 to $1,915,000 investment range is dominated by building costs, and against average 2025 net sales of $1,136,589 for Checkers and $1,134,958 for Rally’s, both brands land at roughly a 1:1 sales-to-investment ratio, well below the 2:1 benchmark many restaurant analysts favor. Sales grew modestly for both brands in 2025 (up 3.3% for Checkers, 1.1% for Rally’s), but new restaurant profitability took a hit: first-year EBITDA margins for new company-owned Checkers locations fell to just 6% of net sales in 2025, down sharply from 12% in 2024, driven mainly by rising labor costs. That thinner margin translates into an estimated 6.6-to-28.1-year payback range, a wide span reflecting the equally wide investment range.

Ambrosio’s Take is a new feature on all Franchise Chatter FDD Talk posts based on the 2026 FDD.

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In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Checkers & Rally’s franchise, based on Item 7 of the company’s 2026 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Checkers & Rally’s franchise, based on Items 5 and 6 of the company’s 2026 FDD

Section III – Number of franchised and company-owned Checkers & Rally’s outlets at the start of the year and the end of the year for 2023, 2024, and 2025, based on Item 20 of the company’s 2026 FDD

Section IV – News updates on the Checkers & Rally’s franchise opportunity

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Section V – Presentation and analysis of Checkers & Rally’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2026 FDD, including information on the:

2025 average, median, low, and high net sales for the 115 company-owned and 320 franchised Checkers Restaurants (and 99 company-owned and 164 franchised Rally’s Restaurants) that were open and operating for at least 350 days during the 52-week period ending December 29, 2025 (the “2025 Fiscal Year”)

average, median, low, and high net sales during the first 52-week period of operations for the 2 company-owned and 39 franchised Checkers Restaurants (and 10 franchised Rally’s Restaurants) that opened between January 2023 and December 2025

average net sales, food and paper costs, labor and benefit costs, gross margin, and royalties, occupancy and operating costs during the first full 12 months of operation for the 2 new company-owned Checkers Restaurants that were open and operating during the entire 2025 Fiscal Year

2025 average, median, high, and low net sales for the 50 Checkers Restaurants (and 16 Rally’s Restaurants) open less than 350 days during the 2025 fiscal year

Section VI – Key ratios, comparables, computations, and analyses for the Checkers & Rally’s franchise opportunity (exclusive content for Platinum subscribers)

Section I – Checkers & Rally’s Franchise Costs

Checkers & Rally’s (modular design drive-thru restaurant) franchise costs, based on Item 7 of the company’s 2026 FDD:

Initial Franchise Fee: $20,000 to $30,000
Initial Advertising Deposit: $15,000
Asset Transfer Fee: $0 to $10,000
Restaurant Building Costs: $210,000 to $1,250,000
Restaurant Equipment and Technology: $125,000 to $340,000
Soft Costs: $13,000 to $30,000
Signage Including Menu Boards: $12,000 to $108,000
Inventory: $4,000 to $12,000
Additional Funds – 3 Months: $50,000 to $120,000
Total Estimated Checkers & Rally’s Franchise Costs (exclusive of real estate and related costs): $449,000 to $1,915,000

Section II – Checkers & Rally’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

Checkers & Rally’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2026 FDD:

Initial Franchise Fee: $20,000 to $30,000
Royalty: 4% of your Net Sales, or 2% of your Net Sales if you operate a Restaurant from a Non-Traditional Site
National Production Fund Contributions: you will be required to pay up to 3% of your Net Sales (currently, 2.65% of your Net Sales)
Cooperative Advertising: determined by your local or regional advertising cooperative
Local Advertising Fee: the difference between the current NPF contribution rate and 4.5% of your Net Sales

Section III – Number of Franchised and Company-Owned Checkers & Rally’s Outlets

Franchised

2023

Outlets at the Start of the Year: 384
Outlets at the End of the Year: 377
Net Change: -7

2024

Outlets at the Start of the Year: 377
Outlets at the End of the Year: 356
Net Change: -21

2025

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Outlets at the Start of the Year: 356
Outlets at the End of the Year: 332
Net Change: -24

Company-Owned

2023

Outlets at the Start of the Year: 132
Outlets at the End of the Year: 126
Net Change: -6

2024

Outlets at the Start of the Year: 126
Outlets at the End of the Year: 123
Net Change: -3

2025

Outlets at the Start of the Year: 123
Outlets at the End of the Year: 121
Net Change: -2

Section IV – News Updates on the Checkers & Rally’s Franchise

Checkers & Rally’s Reignites Growth With Bold Reimaging and Expansion

Checkers & Rally’s New Prototype Cuts Square Footage Almost in Half

Checkers & Rally’s New Leadership, Fresh Prototype, and Reimaging Campaign Spur Growth

Why Checkers and Rally’s Are Keeping the Pedal to the Metal on Value

Popular Burger Chain Franchisee Files Chapter 11 Bankruptcy

Checkers & Rally’s Welcomes New Restaurant Ownership of Three Locations

Checkers and Rally’s Did Not Rank on Entrepreneur’s 2026 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Checkers & Rally’s Franchise (Item 19, 2026 FDD)

Part 1 – Statement of Average Net Sales of Checkers Restaurants

As used in this Item 19, “Net Sales” means all revenue derived from operating the Franchised Restaurant, including the aggregate of all sales amounts from food, beverages, and other products sold and services rendered at the Premises or otherwise rendered in connection with the Franchised Restaurant, and all monies derived from sales at or away from the Franchised Restaurant, whether from cash, check, credit or debit card, barter, exchange, trade credit, or other credit transactions, but: (1) excluding all federal, state, or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority; and (2) reduced by the amount of any documented refunds, credits, allowances, adjustments, promotional discounts, and charge-backs the Franchised Restaurant provides to customers in good faith.

Table A – All Checkers Restaurants

Table A comprises Net Sales information for the 115 company-owned Checkers Restaurants and the 320 franchised Checkers Restaurants that were open and operating for at least 350 days during the 52-week period ending December 29, 2025 (the “2025 Fiscal Year”).

Table A does not include the Net Sales for 2 company-owned Checkers Restaurants and 12 franchised Checkers Restaurants that were open for less than 350 days during the 2025 Fiscal Year. Table A also excludes 1 company-owned and 35 franchised Checkers Restaurants that were closed during the 2025 Fiscal Year.

All Company-Owned

Average Net Sales 2025 Fiscal Year: $1,096,821
Number of Restaurants: 115
% Attaining or Exceeding Average: 56 or 49%
Median Net Sales 2025 Fiscal Year: $1,090,044
Low Net Sales 2025 Fiscal Year: $672,624
High Net Sales 2025 Fiscal Year: $1,765,365

All Franchised

Average Net Sales 2025 Fiscal Year: $1,136,589
Number of Restaurants: 320
% Attaining or Exceeding Average: 150 or 47%
Median Net Sales 2025 Fiscal Year: $1,102,416
Low Net Sales 2025 Fiscal Year: $197,376
High Net Sales 2025 Fiscal Year: $3,102,720

Site Built or Conversion Restaurant – Company-Owned

Average Net Sales 2025 Fiscal Year: $1,096,821
Number of Restaurants: 115
% Attaining or Exceeding Average: 56 or 49%
Median Net Sales 2025 Fiscal Year: $1,090,044
Low Net Sales 2025 Fiscal Year: $672,624
High Net Sales 2025 Fiscal Year: $1,765,365

Site Built or Conversion Restaurant – Franchised

Average Net Sales 2025 Fiscal Year: $1,193,130
Number of Restaurants: 280
% Attaining or Exceeding Average: 130 or 46%
Median Net Sales 2025 Fiscal Year: $1,145,144
Low Net Sales 2025 Fiscal Year: $260,667
High Net Sales 2025 Fiscal Year: $3,102,720

End Cap Strip-Center & Gas/Convenience Restaurant – Franchised

Average Net Sales 2025 Fiscal Year: $630,696
Number of Restaurants: 19
% Attaining or Exceeding Average: 9 or 47%
Median Net Sales 2025 Fiscal Year: $623,432
Low Net Sales 2025 Fiscal Year: $197,376
High Net Sales 2025 Fiscal Year: $1,134,096

Non-Traditional, Walmart, or In-Line Restaurant in High Density Market – Franchised

Average Net Sales 2025 Fiscal Year: $840,420
Number of Restaurants: 21
% Attaining or Exceeding Average: 11 or 52%
Median Net Sales 2025 Fiscal Year: $902,345
Low Net Sales 2025 Fiscal Year: $264,131
High Net Sales 2025 Fiscal Year: $1,491,491

Table B – First Year of Operations for New Checkers Restaurants

Table B includes Net Sales information during the first 52-week period of operations for the 2 company-owned Checkers Restaurants and the 39 franchised Checkers Restaurants that opened between January 2023 and December 2025.

Table B does not include the Net Sales for 7 franchised Checkers Restaurants because they did not have a full 52-week period of operation as of the issuance date of the Disclosure Document.

All Company-Owned

Average Net Sales During First 52-Week Period of Operations: $1,275,089
Number of Restaurants: 2
% Attaining or Exceeding Average: 1 or 50%
Median Net Sales During First 52-Week Period of Operations: $1,275,089
Low Net Sales During First 52-Week Period of Operations: $1,235,112
High Net Sales During First 52-Week Period of Operations: $1,315,066

All Franchised

Average Net Sales During First 52-Week Period of Operations: $1,505,140
Number of Restaurants: 39
% Attaining or Exceeding Average: 19 or 49%
Median Net Sales During First 52-Week Period of Operations: $1,461,292
Low Net Sales During First 52-Week Period of Operations: $398,299
High Net Sales During First 52-Week Period of Operations: $4,404,287

Site Built or Conversion Restaurant – Company-Owned

Average Net Sales During First 52-Week Period of Operations: $1,275,089
Number of Restaurants: 2
% Attaining or Exceeding Average: 1 or 50%
Median Net Sales During First 52-Week Period of Operations: $1,275,089
Low Net Sales During First 52-Week Period of Operations: $1,235,112
High Net Sales During First 52-Week Period of Operations: $1,315,066

Site Built or Conversion Restaurant – Franchised

Average Net Sales During First 52-Week Period of Operations: $1,614,209
Number of Restaurants: 35
% Attaining or Exceeding Average: 18 or 51%
Median Net Sales During First 52-Week Period of Operations: $1,623,624
Low Net Sales During First 52-Week Period of Operations: $591,484
High Net Sales During First 52-Week Period of Operations: $4,404,287

End Cap Strip-Center & Gas/Convenience Restaurant – Franchised

Average Net Sales During First 52-Week Period of Operations: $599,483
Number of Restaurants: 1
% Attaining or Exceeding Average: 1 or 100%
Median Net Sales During First 52-Week Period of Operations: $599,483
Low Net Sales During First 52-Week Period of Operations: $599,483
High Net Sales During First 52-Week Period of Operations: $599,483

Non-Traditional, Walmart, or In-Line Restaurant in High Density Market – Franchised

Average Net Sales During First 52-Week Period of Operations: $534,548
Number of Restaurants: 3
% Attaining or Exceeding Average: 1 or 33%
Median Net Sales During First 52-Week Period of Operations: $495,006
Low Net Sales During First 52-Week Period of Operations: $398,299
High Net Sales During First 52-Week Period of Operations: $710,338

Part 2 – Statement of Average and Median Net Sales of Rally’s Restaurants

Table A – All Rally’s Restaurants

Table A comprises Net Sales information for the 99 company-owned Rally’s Restaurants and the 164 franchised Rally’s Restaurants that were open and operating for at least 350 days during the 2025 Fiscal Year.

Table A does not include the Net Sales for the 4 franchised Rally’s Restaurants that were open for less than 350 days during the 2025 Fiscal Year.

All Company-Owned

Average Net Sales 2025 Fiscal Year: $1,103,806
Number of Restaurants: 99
% Attaining or Exceeding Average: 44 or 44%
Median Net Sales 2025 Fiscal Year: $1,049,268
Low Net Sales 2025 Fiscal Year: $609,576
High Net Sales 2025 Fiscal Year: $2,375,855

All Franchised

Average Net Sales 2025 Fiscal Year: $1,134,958
Number of Restaurants: 164
% Attaining or Exceeding Average: 72 or 44%
Median Net Sales 2025 Fiscal Year: $1,064,667
Low Net Sales 2025 Fiscal Year: $248,313
High Net Sales 2025 Fiscal Year: $2,535,416

Site Built or Conversion Restaurant – Company-Owned

Average Net Sales 2025 Fiscal Year: $1,103,806
Number of Restaurants: 99
% Attaining or Exceeding Average: 44 or 44%
Median Net Sales 2025 Fiscal Year: $1,049,268
Low Net Sales 2025 Fiscal Year: $609,576
High Net Sales 2025 Fiscal Year: $2,375,855

Site Built or Conversion Restaurant – Franchised

Average Net Sales 2025 Fiscal Year: $1,159,585
Number of Restaurants: 155
% Attaining or Exceeding Average: 67 or 43%
Median Net Sales 2025 Fiscal Year: $1,083,382
Low Net Sales 2025 Fiscal Year: $351,638
High Net Sales 2025 Fiscal Year: $2,535,416

End Cap Strip-Center & Gas/Convenience Restaurant – Franchised

Average Net Sales 2025 Fiscal Year: $844,814
Number of Restaurants: 5
% Attaining or Exceeding Average: 2 or 40%
Median Net Sales 2025 Fiscal Year: $811,557
Low Net Sales 2025 Fiscal Year: $395,659
High Net Sales 2025 Fiscal Year: $1,435,652

Non-Traditional, Walmart or In-Line Restaurant in High Density Market – Franchised

Average Net Sales 2025 Fiscal Year: $543,329
Number of Restaurants: 4
% Attaining or Exceeding Average: 3 or 75%
Median Net Sales 2025 Fiscal Year: $616,236
Low Net Sales 2025 Fiscal Year: $248,313
High Net Sales 2025 Fiscal Year: $692,529

Table B – First Year of Operations for New Rally’s Restaurants

Table B includes Net Sales information during the first 52-week period of operations for the 10 franchised Rally’s Restaurants that opened between January 2023 and December 2025 (each, a “New Rally’s Restaurant”).

Table B does not include the Net Sales for 1 franchised Rally’s Restaurant because it did not yet have a full 52-week period of operation as of the issuance date of the Disclosure Document.

All Franchised

Average Net Sales During First 52-Week Period of Operations: $1,370,093
Number of Restaurants: 10
% Attaining or Exceeding Average: 4 or 40%
Median Net Sales During First 52-Week Period of Operations: $1,274,445
Low Net Sales During First 52-Week Period of Operations: $607,350
High Net Sales During First 52-Week Period of Operations: $2,133,416

Site Built or Conversion Restaurant – Franchised

Average Net Sales During First 52-Week Period of Operations: $1,454,843
Number of Restaurants: 9
% Attaining or Exceeding Average: 4 or 44%
Median Net Sales During First 52-Week Period of Operations: $1,353,276
Low Net Sales During First 52-Week Period of Operations: $995,622
High Net Sales During First 52-Week Period of Operations: $2,133,416

End Cap Strip-Center & Gas/Convenience Restaurant – Franchised

Average Net Sales During First 52-Week Period of Operations: $607,350
Number of Restaurants: 1
% Attaining or Exceeding Average: 1 or 100%
Median Net Sales During First 52-Week Period of Operations: $607,350
Low Net Sales During First 52-Week Period of Operations: $607,350
High Net Sales During First 52-Week Period of Operations: $607,350

Part 3 – Statement of Gross Margin (First Year of Operations for New Company-Owned Checkers Restaurants)

The Statement of Gross Margin for New Company Checkers Restaurants consists of the reported Net Sales, food and paper costs, and labor and benefit costs for 2 company-owned New Checkers Restaurants that were open and operating during the entire 2025 Fiscal Year (“New Company Restaurants”).

The New Company Restaurants opened between January 2023 and December 2025 and the figures included below represent their operating expenses and Net Sales during each of their first full 13 periods of operation.

Average New Restaurant

Net Sales: $1,219,218 (100%)
Food and Paper Costs: $368,784 (30%)
Labor and Benefit Costs: $409,919 (34%)
Gross Margin: $440,516 (36%)
Royalties, Occupancy, and Operating Costs: $360,855 (30%)

Food and Paper Costs. Food, paper, and packaging costs, less supplier rebates.

Labor and Benefit Costs. Wages, bonuses, payroll taxes, workers’ compensation, medical insurance, and other benefits.

Gross Margin equals Net Sales less food and paper costs and labor and benefit costs.

Royalties, occupancy, and operating costs include rent, property taxes, marketing expenditures (NPF contributions, regional cooperative contributions, and Restaurant-specific promotions), utility costs (electricity, gas, water, and sewer), presumed royalties of 4% of Net Sales, and other routine expenses (maintenance and repairs, supplies, bank charges, uniforms, and other services).

Restaurant-level EBITDA excludes multi-unit supervision costs typically charged against Restaurant costs for company-owned Checkers Restaurants.

Each of the presented New Checkers Restaurants lease the location for their Checkers Restaurant and the average annual rent was $74,267 and the median annual rent was $74,267.

“EBITDA” means earnings before interest, taxes, depreciation, and amortization.

Part 4 – Statements of Average Net Sales of Checkers/Rally’s Restaurants Open Less Than 350 Days During the 2025 Fiscal Year

The table below includes Net Sales information for the 47 franchised Checkers Restaurants, 3 company-owned Checkers Restaurants, 14 franchised Rally’s Restaurants, and 2 company-owned Rally’s Restaurants that were open and operating for less than 350 days during the 2025 Fiscal Year.

These restaurants were not open for 350 or more days because they were: (i) temporarily closed for remodeling; (ii) temporarily closed because of hurricane; (iii) temporarily closed for other issues (e.g., fire, staffing issues, or supply chain disruption); (iv) closed permanently at some point during the 2025 Fiscal Year; or (v) opened for business after the start of the 2025 Fiscal Year.

Checkers Restaurants

Average Net Sales 2025 Fiscal Year: $412,446
Number of Restaurants: 50
% Attaining or Exceeding Average: 23 or 46%
Median Net Sales 2025 Fiscal Year: $300,424
Low Net Sales 2025 Fiscal Year: $199
High Net Sales 2025 Fiscal Year: $1,252,334

Rally’s Restaurants

Average Net Sales 2025 Fiscal Year: $296,490
Number of Restaurants: 16
% Attaining or Exceeding Average: 6 or 38%
Median Net Sales 2025 Fiscal Year: $215,751
Low Net Sales 2025 Fiscal Year: $18,204
High Net Sales 2025 Fiscal Year: $940,928

Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Checkers & Rally’s Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️

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Checkers and Rally’s Franchise Review 2026: Costs, Fees, News, Average Revenues and/or Profits

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Section I – Checkers & Rally’s Franchise Costs

Section II – Checkers & Rally’s Initial Franchise Fee, Royalty Fee, and Marketing Fee